Rubrik RBRK on Tuesday launched its Data Security Posture Management (DSPM) solution for Microsoft MSFT 365 Copilot, aimed at enhancing data security and governance as organizations increasingly adopt AI-powered tools like Microsoft 365 Copilot.
With the growing volume of sensitive data stored in Microsoft 365 environments, Rubrik’s DSPM provides crucial visibility and control, helping organizations manage data classification, labeling, and access permissions.
The solution is designed to minimize privacy risks and ensure that sensitive information remains protected from unauthorized access, allowing organizations to confidently and securely leverage the full potential of Microsoft 365 Copilot.
Portfolio Strength Boosts RBRK Prospects
Rubrik’s growing customer base and increased demand for its data security solutions have been a major growth driver.
Rubrik, Inc. Price and Consensus
Rubrik, Inc. price-consensus-chart | Rubrik, Inc. Quote
In second-quarter fiscal 2025, subscription revenues surged 50% year over year to reach $191.3 million, fueled by strong momentum from a robust partner network and the growing adoption of its solutions.
RBRK’s subscription Annual Recurring Revenue (ARR) reached $919 million, marking 40% year-over-year growth in second-quarter fiscal 2025. The upside can be attributed to adding new customers and expanding relationships with existing ones.
Rubrik Gains From Growing Client Base
Rubrik’s expanding clientele, which includes major industry players like Pure Storage PSTG, Alphabet’s GOOGL cloud business, Google Cloud and CrowdStrike, has been a key catalyst.
In September, Rubrik partnered with Pure Storage to enhance Cyber Resilience through a three-layered defense strategy that combines primary storage, data security and long-term retention using Rubrik Security Cloud.
In August, the company announced a partnership with Mandiant, a division of Alphabet’s Google Cloud, aimed at integrating threat intelligence and improving cyber recovery capabilities to bolster organizations’ defenses against data breaches and ransomware attacks.
Rubrik’s expansion in cloud services has been noteworthy. In the second quarter of fiscal 2025, the company achieved $678 million in cloud ARR, which is an 80% year-over-year increase. RBRK’s ability to deliver cloud-native solutions played a vital role in its overall growth, positioning it as a leader in the data management and security space.
RBRK Q3 Guidance Not So Rosy
Despite Rubrik’s strong demand for its data security solutions and growing client base, intense competition in the cyber resilience market and macroeconomic challenges are expected to impact RBRK’s top-line growth in fiscal 2025.
Rubrik shares have risen 5.7% in the year-to-date period compared with the broader Zacks Computer and Technology sector’s return of 26.8% and the Zacks Internet - Software sector’s rise of 26.3%.
For third-quarter fiscal 2025, RBRK expects revenues between $216.5 million and $218.5 million. Non-GAAP loss is expected to be between 40 cents and 46 cents per share.
The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is currently pegged at $217.64 million. The consensus mark for loss is currently pegged at 40 cents per share, unchanged in the past 30 days.
What Investors Should Do With RBRK Stock?
Rubrik’s competitive position is under pressure from various data management and protection vendors, including Cohesity, Commvault, Veeam, IBM, and Dell EMC.
IBM’s recent partnership with Palo Alto Networks further highlights Rubrik’s competitive pressure, as IBM aims to bolster its cybersecurity services using AI-powered solutions to enhance data security and identity management.
RBRK stock is also not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
Rubrik currently carries Zacks Rank #4 (Sell), which implies that investors should stay away from investing in this stock at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Pure Storage, Inc. (PSTG) : Free Stock Analysis Report
Rubrik, Inc. (RBRK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
